Anti-Money Laundering and Combating the Financing of Terrorism

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Effective anti-money laundering and combating the financing of terrorism (AML/CFT) policies and measures are key to the integrity and stability of the international financial system and member countries’ economies.
Money laundering (ML), predicate offenses, terrorist financing (TF), and proliferation financing (PF) are crimes with economic effects that can:
- threaten the integrity and stability of a country’s financial sector and a country’s external stability more generally;
- result in destabilizing “hot money” resulting from inflows and outflows;
- contribute to banking crises, ineffective revenue collection, broader governance weaknesses, reputational risks for international financial centers, and loss of correspondent banking relationships (CBRs).
In an increasingly interconnected world, the harm done by ML/TF/PF is global, affecting the integrity and stability of the international financial system.
AML/CFT policies and measures are designed to prevent and combat these crimes and are essential to protect the integrity and stability of financial markets and the global financial system.

Money Laundering (ML)
- Defined as the processing of assets from criminal activity to obscure their illegal origins.
- The money laundering offense should apply to all serious offenses, with a view to including the widest range of predicate offenses.
- At a minimum, it should apply to the 21 categories of offenses designated by the Financial Action Task Force (FATF) in its glossary, including, inter alia, participation in organized crime, fraud, drug trafficking, corruption and bribery, and tax crimes.
Terrorism Financing (TF)
- Involves the raising and processing of funds to supply terrorists with resources.
- While ML and TF differ in many ways, they often exploit the same vulnerabilities in financial systems that allow for an inappropriate level of anonymity and opacity in the execution of financial transactions.
Proliferation Financing (PF)
- Requires countries to implement targeted financial sanctions to comply with United Nations Security Council (UNSC) resolutions on the proliferation of WMD and its financing.
- Similar in approach to targeted financial sanctions applicable to TF but narrower in application, addressing exclusively the freezing without delay of funds or other assets of persons or entities designated by the UNSC as being involved in illicit proliferation of WMD and domestic cooperation.

Over the past 20 years, the IMF has helped shape AML/CFT policies globally and within members’ national frameworks.
Financial integrity issues are covered (as relevant) in all of the IMF’s functions: surveillance, lending, and capacity development.
Specific IMF engagements:
- Staff gives policy advice on macro-critical AML/CFT issues in Article IV consultations.
- AML/CFT issues relevant to the financial sector’s soundness and stability are covered as part of the Financial Sector Assessment Programs (FSAPs).
- IMF inputs into the design and implementation of financial integrity-related measures in Fund-supported programs.
- The IMF delivers bilateral, regional, and thematic technical assistance and has an extensive capacity development program on AML/CFT.
- The IMF contributes to the global AML/CFT architecture through participation in standard setting, assessment of countries against international AML/CFT standards, coordination in capacity development delivery, and collaborations on policy dialogue and analytical work.
Governance and strategy:
- The IMF’s work on AML/CFT is guided by its AML/CFT strategy, which is reviewed by the IMF’s Executive Board on a five-year policy review cycle.
- The 2023 Review of the AML/CFT Strategy was endorsed by the Executive Board of the IMF in November 2023.

Purpose and outcomes:
- The AML/CFT Thematic Fund is a pre-eminent global initiative for capacity development, assisting countries to strengthen the effectiveness of their AML/CFT frameworks and bolstering the integrity of the financial sector and broader economy.
- The Fund recently helped Jordan and Uganda exit the grey list of the Financial Action Task Force, assisted Haiti in upgrading its Financial Intelligence Unit, and funded two publications on counter terrorism financing and beneficial ownership to help policymakers implement effective AML/CFT measures.
Operational details:
- The AML/CFT Thematic Fund was established in 2009.
- The Fund is in its third phase of operations (2020-2026).

"Public Consultation on the Fund’s AML/CFT work"
"Blog Post: New strategic direction in the Fund’s AML/CFT engagement" — December 7, 2023
"2023 Review of the AML/CFT Strategy Board Paper" — December 5, 2023
"New Economics Books Explore Trade, Finance, and a Changing World Order" — August 6, 2026
"Latin America Can Boost Economic Growth by Reducing Crime" — December 18, 2023
"Financial Crimes Hurt Economies and Must be Better Understood and Curbed" — December 7, 2023
"Money Laundering Poses a Risk to Financial Sector Stability" — September 4, 2023
"Crypto Needs Comprehensive Policies to Protect Economies and Investors" — July 18, 2023
"New Worries for Central Bankers" — March 1, 2023

Anti-Money Laundering/Combating the Financing of Terrorism Thematic Fund
- Anti-Money Laundering/Combating the Financing of Terrorism Thematic Fund (Markdown version)
- Anti-Money Laundering/Combating the Financing of Terrorism Thematic Fund (PDF)